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This work is the fifth in a series of books on the major petroleum and gas exporting nations, most of them part of the developing world. Because of its gas dimension, Algeria occupies a special position in the global economy, particularly with regard to Europe. At the same time, despite its efforts to diversify the economy, Algeria still finds that its prospects are closely bound to the future of oil and gas. A broad description is provided of the oil and gas sectors of the country, highlighting those features which give Algeria a physiognomy of its own. The analysis is set into the context of history, economic policy and international relations. It also seeks to identify the specific challenges that Algeria will face in developing its hydrocarbon wealth to the best advantage of its economy.